Ibrahim Gardner
Students at UC Santa Cruz have a variety of options when it comes to paying off their student loans. The university offers monthly payment plans, and students can also apply for financial aid, which can be used to cover tuition, room and board, books, and other expenses. Students can also take out private loans from outside financial institutions, though it is recommended that they first check with the school's office to determine if they have other available options. Additionally, students who are unable to make payments can utilize deferment or forbearance options, or opt for an income-based repayment plan.
| Characteristics | Values |
|---|---|
| Payment plans | The Student Business Services Office offers a monthly payment plan that allows quarterly tuition and fee payments to be made in monthly installments. Students may request a monthly payment plan from the campus Housing Office before the beginning of the quarter for which they are enrolled. |
| Grace period | Borrowers receive a grace period after separating from UCSC. Separation includes graduation, less than half-time enrollment, leave of absence, and withdrawals. During the grace period, borrowers are not required to make payments. Direct Loan and Dream Loan borrowers receive a 6-month grace period after separation. |
| Interest | Interest accrues for unsubsidized loans right away, so it's best to pay off unsubsidized loans as soon as possible. Paying the interest on an unsubsidized loan while in school will also keep the interest from capitalizing (which means in-school interest is added to your principal balance and then you can accrue interest on interest). |
| Consolidation | Perkins Loans, Direct Loans, and Dream Loans can be consolidated at studentloans.gov. University Loans are not eligible for consolidation on studentloans.gov, but there are private companies that offer consolidation. |
| Repayment plans | Student loan borrowers can use deferment or forbearance entitlements (which allow the borrower to not pay all or to make only small interest payments). The borrower can also go on an income-based repayment plan. |
| Verification | Students may be selected for verification, which requires submitting additional documentation to improve the accuracy of the information submitted on their Financial Aid Application. |
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What You'll Learn
Payment plans
UCSC offers a few options for students who are struggling to pay off their loans. Firstly, there is the option of a monthly payment plan offered by the Student Business Services Office. This plan allows quarterly tuition and fee payments to be made in monthly instalments. Students can also request a personalised payment plan from the Campus Housing Office to meet their individual needs, such as an employment pay schedule. This request should be made before the payment due date.
Additionally, students can utilise deferment or forbearance options, which allow them to make small interest payments or temporarily pause payments. Borrowers can also consolidate their Perkins loan with their Direct loans to be placed on an income-based repayment plan. It is important to note that interest accrues on unsubsidised loans from the moment the loan is taken out, so it is recommended to pay off these loans first to minimise the overall interest paid.
During a period of separation from UCSC, such as graduation or leave of absence, borrowers receive a grace period where they are not required to make payments. Direct Loan and Dream Loan borrowers are provided with a 6-month grace period post-separation.
For those pursuing a career in certain fields, such as nursing, teaching, or family services, Perkins loans offer loan cancellation options.
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Loan types
Federal Direct Loans are available to students and parents regardless of family income. Federal loans have better terms than most private or bank loans. For instance, most bank loans have high-interest rates and do not offer provisions for deferment that exist for federal loans. Loan repayments for Federal Direct Loans can be deferred until the student is no longer enrolled for at least half of the duration as an undergraduate or graduate student. Other deferment options are also available while you are in the process of repaying the loan.
The U.S. Department of Education provides information on the national student loan default rate, as well as rates for individual schools, states, types of postsecondary institutions, and other sectors of the federal loan industry. Students who need further information about defaulted federal education debt may wish to visit the U.S. Department of Education Understanding Debt webpage.
Education loans are long-term funds that enable students and parents to pay for educational expenses. When accepting a loan, the recipient is legally obligated to repay the loan according to the terms of the promissory note.
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Loan servicers
Students at UC Santa Cruz can receive a range of loans, including Direct Loans, Perkins Loans, Dream Loans, University Loans, and GTSRS Loans. Direct Loans are repaid to one of four Direct Loan Servicers: Nelnet, Navient, Great Lakes, or Fed Loans. Perkins, Dream, Noyce, and University Loans are repaid to ECSI.
If you are unsure what kind of loans you have, you can review your account at my.ucsc.edu (in the Student Center section or My Account). You can also email [email protected]. If you have a Perkins loan, you likely also have a Direct Loan, meaning you will need to pay two separate companies. However, if you would prefer to pay just one company, you can consolidate your loans at www.studentloans.gov.
The Student Business Services Office and the Housing Office offer monthly payment plans. For more information, contact them directly. If you are a first-time loan borrower, you will need to complete a promissory note, entrance counselling online, and read disclosure statements as applicable to the loan you accept.
The University of California is a qualified employer for the Public Service Loan Forgiveness (PSLF) program. For more information on the process, visit UC Net.
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Loan repayment options
Students at UCSC have a variety of loan repayment options available to them. Firstly, it's important to note that no loan payments are due while students are still enrolled in school, but any payments made during this time will help reduce the overall interest paid on the loan. Interest accrues for unsubsidized loans right away, so it is recommended to pay off these loans as soon as possible. Students can also make interest-only payments while enrolled to prevent interest from capitalizing (i.e., preventing in-school interest from being added to the principal balance, which can then accrue further interest).
If students are unable to make their loan payments, they have several options. They can use deferment or forbearance entitlements, which allow them to make small interest-only payments or no payments at all. They can also request a forbearance over the phone or submit a deferment form, which can be applied retroactively. Alternatively, they can make a larger payment to catch up on their balance. Additionally, students can consolidate their Perkins loans with their Direct loans to get on an income-based repayment plan. This consolidation can be done for free at studentloans.gov. It is important to note that if students withdraw from school, they may be expected to repay a portion of their financial aid, and their eligibility for future financial aid may be impacted.
The Student Business Services Office at UCSC offers a monthly payment plan that allows quarterly tuition and fee payments to be made in monthly installments. Students can also request a personalized payment plan from the campus Housing Office to meet their individual needs, such as aligning with their employment pay schedule.
To find out more information about loan servicers and repayment options, students can visit nslds.ed.gov or studentaid.gov. Direct Loans are repaid to the Direct Loan Servicer, while Perkins Loans are repaid to UCSC's servicer, Heartland ECSI.
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Refunds
It is important to note that students must pay charges billed in prior academic years independently from the financial aid disbursement processes, as financial aid funds cannot be applied to prior academic year charges. Additionally, changes in the student's course load or charges added after a refund is generated may result in a balance that the student still owes to the university.
To receive a refund, students must first accept their financial aid offer. This can be done through the MyUCSC student portal, where they can also view their official aid offer. It is recommended to complete all financial aid-associated tasks on MyAid Verify by the due dates to receive the aid offer on time. After accepting the offer, students can calculate their remaining bill for the quarter using the instructions provided by UCSC.
For parent loans, parents must complete a Master Promissory Note (MPN) under their name. Entrance Counseling and Promissory Notes are typically only required once and can be completed online. If a student withdraws from school before the term is over, they may be expected to repay a portion of their financial aid. According to federal regulations, any refundable amount used for tuition, fees, or university housing is returned to the appropriate financial aid sources.
Students can also grant permission for their aid to pay miscellaneous charges such as health insurance, course or lab fees, etc. This can be done on the MyUCSC portal by selecting "Student Permissions" under the "Financial Aid" tile.
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Frequently asked questions
Student loan borrowers have multiple options, including deferment or forbearance entitlements, which allow the borrower to make smaller interest payments or none at all. The borrower can also go on an income-based repayment plan.
Direct Loans are repaid to your Direct Loan Servicer, while Perkins Loans are repaid to UCSC's servicer, Heartland ECSI.
Subsidized means the borrower doesn’t accrue interest while enrolled at least half-time, while in grace, or in deferment. Unsubsidized means interest will begin to accrue from the moment the loan is taken out, so it's best to pay these off first.
No payments are due while in school, but any payments made will help reduce the amount of interest you pay. Since interest accrues for unsubsidized loans right away, it's best to pay them off as soon as possible.
Yes, the Student Business Services Office offers a monthly payment plan that allows quarterly tuition and fee payments to be made in monthly installments. Students can also request a personalized payment plan from the Campus Housing Office.
